KARACHI: A division bench of the Sindh High Court (SHC) directed customs officials to file their respective para wise comments on a constitutional petition filed by M/s Pakistan Leakless Industries Private Limited challenging SRO 670(I)/2019, which purports to levy, demand and collet additional customs duty on import of goods specified in first schedule to the customs act, 1969.
On 9 February 2021, during the hearing, counsel for the petitioner stated that petitioner is supplier of auto parts to different manufacturers/ assemblers of vehicle and imported the raw material/ components for manufacturing of engine gaskets, however, the said goods of the petitioner rang from parts for motorcycle, passenger cars, which fall under different heading in chapter 87 of Pakistan Customs Tariff, the auto parts manufactured/ assemblers of two wheelers and four wheelers.
He argued that petitioner is aggrieved by the arbitrary and illegal application of SRO 670(I) 2019, which purports to levy, demand and collect additional customs duty on import of goods specified in first schedule to the customs act, 1969 at the rate specified therein, this includes import of raw materials, components, and sub-assemblies for manufacturing gaskets automotive parts.
Citing Ministry of Finance, secretary of Industries, chairman FBR, collector of Customs Appraisement West, East as respondents, petitioner pleaded the court to declare that the petitioner having acquired a vested right to exemption from payment of duty and taxes under the customs act, 1969, in excess of the rates as stipulated in the notification giving effect to the tariff plan envisaged by auto policy 2016 from the period of 2016 to 2021, is not liable to pay and further duty under the customs act, 1969, including additional customs duty on their imports under SRO 670(I)/ 2019 and SRO 630(I)/ 2018.
